Profit Snatching..

Captains blog, stardate 3.9.2009..

This stardate posting, will hopefully encompass some stringent fault avoidance tactics developed around my growing habit of taking profits from a stock too early before studying the bigger picture.. Who ever said this Enterprise was gonna be easy, nobody, well, Mr Spock boasted about the simplistic logic behind human psychology and the fact he had some concrete formula's for beating most of them, but apart from said smart-arse nobody has come out and said plotting your way over the surface of planet Stockmarket will be a walk in the park, even with the use of constantly updated charts.. Taking profits isn't as easy as it may sound, because fear and greed influence the decision to push that sell button, or not.. I have been fairly cautious in my dealings, actively chasing profits and then taking them way too soon in a stocks growth from my buy price.. Every share I have taken a fair percentage from has increased further on the upside, some have crept, some bounced, some have literally rocketed from when I took that small profit.. As annoying as it is to watch a stock rise further after selling out, one must accept the decision and move on, even if that means buying back in.. So what lessons are to be learned Mr Moximillion? hmmmmmmmm think, well okay......,

Volume - Look back at the daily trading volumes for signs of interest before selling..

Charts - Analyse the technicals ie: support, resistance, k-tails, spikes and trend-lines..

Ratios - Check pre-tax profit to market-cap, price to earnings, also cash and debt ratios..

Market - What's the market doing, check over the sector index, and also peer groups..

Sentiment - Try to gauge what other players are thinking and either go with, or against..

Just pay more attention cap, don't despair, in time your trading system will be near flawless, but it is gonna take time sir..